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TMI Blog2024 (10) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- In the case of New Noble Educational Society [ 2022 (10) TMI 855 - SUPREME COURT] and Pinegrove International Chairtable Trust [ 2010 (1) TMI 49 - HIGH COURT OF PUNJAB AND HARYANA AT] this Court has held that the powers available to the authorities to cancel the registration granted under Section 12AA (3) of the Act was only prospective and could not be applied retrospectively. In the present case, we find that the institute has been able to satisfy that it has already been registered under Section 10 (23) (vi) to be an educational institute and Section 12AA pertains to registration of the trust. Since the respondent institute is a duly registered educational trust and whatever earnings it receives are also utilized for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Furthermore, it was for the assessee to show before the authorities that the society was carrying out charitable activities. The CIT relied upon the judgment passed by the Supreme Court in Municipal Corporation Delhi v. Children Book Trust ; (1992) 3 SCC 390 wherein, it was held that there is no charity unless there is an element of subsidy or alimonies for the poor and needy. Whereas, in the present case it is apparent from the accounts and net surplus generated by the society, that there is no element of subsidy or alimony involved. 3. The Tribunal in appeal set aside the order of the CIT(A) relying on the judgment passed in Baba Gandha Singh Education Trust v. CIT Patiala, ITA No.357/Chandi/2010 ITA No. 803/Chandi/2009 . The relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making profit. 4. This Court in Commissioner of Income Tax, Patiala v. Baba Banda Singh Bahadur Education Trust, Fatehgarh Sahib; ITA No. 94 of 2011 alongwith Commissioner of Income-Tax, Patiala v. Young Scholar s Educational Society, Barnala, ITA No. 21 of 2011 , while dismissing the Appeal of the revenue and upholding order of ITAT further observed that the Commissioner was required to examine the aforesaid factors while granting approval of registration under Section 10 (23C) of the Act and the same factors would also be required to be considered for the cancellation of registration already granted to the educational institutions, while examining the case under Section 12AA of the Act, of course, taking into consideration the conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust. 6. Thus, at this stage of registration, the Commissioner of Income Tax is required to examine the objectives of the trust and genuineness of its activities. 7. In the case of New Noble Educational Society vs Chief Commissioner of Income-Tax and another; (2022) 448 ITR 594 and Pinegrove International Chairtable Trust vs Union of India and others (2010) 327 ITR (P H), this Court has held that the powers available to the authorities to cancel the registration granted under Section 12AA (3) of the Act was only prospective and could not be applied retrospectively. The relevant extract the order is reproduced as under:- 15. XXXX XXXX 16. While answering questions of law nos. 1, 3 and 4 (supra), we find that essentially the ITAT has he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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